Pakistan and Russia agree to establish new steel mill in Karachi 

A man walks past machines at the hot strip mill department of the Pakistan Steel Mills (PSM) on the outskirts of Karachi, Pakistan, on February 8, 2016. (REUTERS/File)
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Updated 14 May 2025
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Pakistan and Russia agree to establish new steel mill in Karachi 

  • The two countries have worked on deepening their ties in recent years, focusing on energy cooperation
  • Both sides also collaborated in the 1970s when the Soviet Union helped set up Pakistan Steel Mills

ISLAMABAD: Pakistan and Russia have agreed to establish a steel mill in Karachi, state media reported on Tuesday, aiming to boost bilateral ties and expand industrial collaboration between the two countries.

Their understanding reflects a broader deepening of Pakistan-Russia relations in recent years, including energy cooperation on oil and gas supplies. In 2023, the two sides worked on a deal for the delivery of Russian crude to Pakistan, and talks have continued on broader energy partnerships.

The two countries are also collaborating on the Pakistan Stream Gas Pipeline, a major infrastructure project aimed at transporting imported gas from Karachi to Punjab to help meet Pakistan’s energy needs.

The idea of the new steel mills was discussed during a meeting between Russian representative Denis Nazaroof and Special Assistant to the Prime Minister (SAPM) Haroon Akhtar Khan.

“The primary focus of the discussion was the establishment of new steel mills in Pakistan,” the Associated Press of Pakistan (APP) news agency reported.

The new project echoes the historic collaboration between the two sides in the 1970s, when the Soviet Union helped set up Pakistan Steel Mills (PSM).

PSM was once the country’s largest industrial complex. However, the facility suffered decades of neglect, financial mismanagement, and political interference, ultimately shutting down production in 2015 after accumulating billions in losses.

“Pakistan is a secure and thriving hub for investment, and the international community has recognized its potential,” Khan said during the meeting.

“I invite all Russian businesspeople to explore investment opportunities in Pakistan,” he added.

Khan also emphasized the Prime Minister’s vision to attract foreign investment and underscored the potential for meaningful Pakistan-Russia cooperation in the steel sector.


Sindh assembly passes resolution rejecting move to separate Karachi

Updated 21 February 2026
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Sindh assembly passes resolution rejecting move to separate Karachi

  • Chief Minister Shah cites constitutional safeguards against altering provincial boundaries
  • Calls to separate Karachi intensified amid governance concerns after a mall fire last month

ISLAMABAD: The provincial assembly of Pakistan’s southern Sindh province on Saturday passed a resolution rejecting any move to separate Karachi, declaring its territorial integrity “non-negotiable” amid political calls to carve the city out as a separate administrative unit.

The resolution comes after fresh demands by the Muttahida Qaumi Movement (MQM) and other voices to grant Karachi provincial or federal status following governance challenges highlighted by the deadly Gul Plaza fire earlier this year that killed 80 people.

Karachi, Pakistan’s largest and most densely populated city, is the country’s main commercial hub and contributes a significant share to the national economy.

Chief Minister Syed Murad Ali Shah tabled the resolution in the assembly, condemning what he described as “divisive statements” about breaking up Sindh or detaching Karachi.

“The province that played a foundational role in the creation of Pakistan cannot allow the fragmentation of its own historic homeland,” Shah told lawmakers, adding that any attempt to divide Sindh or separate Karachi was contrary to the constitution and democratic norms.

Citing Article 239 of Pakistan’s 1973 Constitution, which requires the consent of not less than two-thirds of a provincial assembly to alter provincial boundaries, Shah said any such move could not proceed without the assembly’s approval.

“If any such move is attempted, it is this Assembly — by a two-thirds majority — that will decide,” he said.

The resolution reaffirmed that Karachi would “forever remain” an integral part of Sindh and directed the provincial government to forward the motion to the president, prime minister and parliamentary leadership for record.

Shah said the resolution was not aimed at anyone but referred to the shifting stance of MQM in the debate while warning that opposing the resolution would amount to supporting the division of Sindh.

The party has been a major political force in Karachi with a significant vote bank in the city and has frequently criticized Shah’s provincial administration over its governance of Pakistan’s largest metropolis.

Taha Ahmed Khan, a senior MQM leader, acknowledged that his party had “presented its demand openly on television channels with clear and logical arguments” to separate Karachi from Sindh.

“It is a purely constitutional debate,” he told Arab News by phone. “We are aware that the Pakistan Peoples Party, which rules the province, holds a two-thirds majority and that a new province cannot be created at this stage. But that does not mean new provinces can never be formed.”

Calls to alter Karachi’s status have periodically surfaced amid longstanding complaints over governance, infrastructure and administrative control in the megacity, though no formal proposal to redraw provincial boundaries has been introduced at the federal level.